Informal Sector

The Informal Sector Cooperative Housing Loan Scheme (“The Coop Loan
Scheme”) is a product under the umbrella of the National Housing Fund (NHF)
Scheme, designed to accommodate non-salaried informal sector Nigerians
through co-operative societies to join the National Housing Fund and avail
themselves the opportunity of becoming proud home owners.

The Loan Facility under the Scheme could be accessed one of two ways,
namely:

Cooperative Housing Development Loan (CHDL):

The loan enables a cooperative society that has acquired a plot of land to
develop houses for allocation to its members. The parcel of land will have title
in the name of the society which will act as the facilitator on behalf of its
members in the loan transaction and which would facilitate construction of the
housing unit.
The root of title of the estate land would be subleased to the beneficiaries.

Features:

The Co-operative Society must be registered with the Registrar of
Cooperatives in charge of the area within which it is domiciled.

The Society must be registered with the National Housing Fund (NHF)
Scheme.

The Society must be responsible for remitting the contributions of its
members.

The Cooperative Society must be accredited by the Bank.

The Cooperative must have been in existence for a minimum period of
twelve month during which membership deals paid by members have
been consistent.

The proposed estate must have good title that can be sub-leased to
individual allotters/purchasers of the housing unit there in.

The tenure of the loan shall be 24months with moratorium period of
12months.

. The loan shall be disbursed to a cooperative society at an interest rate
of 10%.

The Cooperative shall identify a PMI with which it shall collaborate for
the purpose of processing a Cooperative NHF Loan (CNL) for its
members

Housing units for the proposed project(s) must fall within a target selling
price not exceeding N5million.

The land upon which the state is to be built shall have legal title.

The security for disbursing each tranche of the loan shall be the title
document of the estate land.

The loan shall be disbursed in three tranches to complete the substructure, super-structure, and finishing.

The Bank shall finance 100% of housing development and 90%
infrastructural facilities.

The co-operative society is to develop the housing estate inany of the
following ways:

Engage registered building professionals with a view to managing the
projects and completing the housing units to standard.

Used professionals from within its ranks, on submission of proof of
technical expertise of members by the society.

Engage an Estate Development company, provided the company is
able to deliver the houses at a price affordable to the cooperators

All housing units in the estate must be sold to the co-operative society
members who are contributors to NHF Scheme.

Documentation

Document required for the CHDL are amongst others:

Certificate registration of the Co-operative society

Bye laws of the cooperative society.

Detailed Profile of the Co-operative Society.

. Resolution of the Board of Trustees of the Society signed by the chairman
and the Secretary, authorizing it borrow.

Co-operative National Housing Fund Loan (CNL):

This loan window offers individual co-operative member’s mortgage loan to
buy a housing unit develops through the Cooperative housing Development
Loan or renovates an existing one.